Yatti Soni | Bengaluru, June 6 |
Flipkart is betting on live and video commerce to increase its conversion rate and reach the next billion users. The company plans to do a 24-hour broadcast of live commerce videos during its 7-day End of the Season Sale.
Live commerce was launched on Flipkart in February 2022 in the form of Flipkart Feed. This new-age form of commerce involves influencers showcasing various fashion products in a live video, and customers can buy these products directly on Flipkart. BusinessLine spoke to Sandeep Karwa, Vice President, Flipkart Fashion, about the company’s plan for live commerce and the growth of the fashion vertical. Excerpts:
Why the decision to do 24-hour live/video commerce? Have you seen a high conversion rate on Flipkart Feed?
The conversion rates on live commerce are lower than our static web page conversion, but they are a very encouraging number. I say it is an encouraging number because it allows us to talk to very different kinds of customers. It will enable us to engage with a customer who is probably not very comfortable with using a static webpage. That’s also why we started our work on vernacular languages; today, our app is accessible in many vernacular languages. Live commerce allows us to bring people from different age groups, geographies, and backgrounds to the ambit of e-commerce. I think that is where the real encouragement lies.
Can you share any engagement metrics from the live sessions hosted on Flipkart Feed in the past?
Today, Flipkart Feeds also have static posts and a lot of content coming from the feed partners. We have seen healthy engagement on the feed altogether. A live commerce video is anything between 10 minutes to 30 minutes, and we have seen 60 per cent to 70 per cent of users who started watching a video have stayed back to watch the entire video. It is also too soon for us to talk about other engagement metrics.
Do you see live commerce increasing Flipkart’s conversion rate and revenue in future?
Yes, definitely. Live and video commerce engage a completely different kind of customer. Second, it also encourages a customer to shop not just for one product but to shop the entire look. This expands the customer’s basket with us and probably also increases our share of the wallet with that customer. So live commerce is a very important bet for us. Further, Live also converts a lot of latent needs of customers into actual need.
What is the customer demographic for Flipkart Fashion currently?
Most of our customers come from outside the metro and Tier 1 cities. When I say most, over 50 per cent are coming from Tier 2, 3, and 4. This includes small villages with a population of say 10,000 – 20,000 people. That is where the bulk of Flipkart customers come. But then another close to about 45 per cent of customers come from Metro and Tier 1. It becomes complex for Flipkart to go out and talk to this kind of diverse customer base. We ship to customers in more than 19,000 zip codes. In terms of gender, we are pretty much 50-50 and are talking to both women and men.
What are your expectations from the upcoming End of Season Sale?
In the recently concluded spring-summer season, we were able to ship out about 200 million fashion products this year, which is a never before the number for the industry. So we are still in that zone and expect that momentum to continue in End of Season sale.
To give you more context, we saw participation from about some 70 per cent more sellers in the Spring-Summer season this year as compared to last year. When I say participation, these were sellers who got a meaningful sale. There were about 175,000 sellers on the platform this year, and we had items starting from ₹150 to going up to ₹10,000 across all categories. For End of Season Sale, we plan to do 24 hours of live/video commerce on all seven days of the sale, which has never happened in India before.